Systems and methods for improving security in blockchain-asset exchange

ABSTRACT

The embodiments described herein comprise hardware and software improvements in blockchain-asset exchange technology, whereby one or more servers automatically, based on a set of predetermined rules, executes a mechanism allowing blockchain-asset exchange customers to place standing-limit or market orders for blockchain-based digital assets (e.g., cryptocurrencies) with a counter-party, but without counter-party risk. The counter-party will not receive the payment until the customer&#39;s exchange order has executed, and the customer has taken possession and ownership of the desired asset. The customer cannot reverse payment or otherwise rescind the payment from the counter-party once the customer receives the desired asset. The systems and methods use blockchain databases, multisignature key signing procedures, and a transparent, objective, automated, rules-based software agent t manage and autonomously govern transfer of digital blockchain-based assets in a multi-party exchange scenario, without risk of asset loss and without the discretion of any human actor.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a non-provisional application claiming the benefitof U.S. Provisional Application No. 62/261,011, entitled “Systems andMethods for Improving Security in Blockchain-Asset Exchange,” filed Nov.30, 2015, which is incorporated by reference in its entirety herein.

TECHNICAL FIELD

The present disclosure relates to improving and enhancingblockchain-asset exchange security by employing automatic rules andautomatic multi-party confirmation.

BACKGROUND

Blockchain-assets are digital tokens (e.g., Bitcoin) that use computercryptography to secure transactions and to control the creation of newunits. Crypto-currencies are a subset of blockchain-assets (also knownas “altcoins,” “digital currencies,” and “virtual currencies”). Bitcoinwas the first popular example of a blockchain-asset and became the firstdecentralized crypto-currency in 2009. Numerous blockchain-assetscurrently exist, which include crypto-currencies, digital ownership orasset tokens, tokenized shares and securities, etc. The definingcharacteristic is a distributed ledger system, known as a blockchain.

Blockchain-assets are traded on exchanges around the world. Traditionalnon-blockchain-asset exchanges provide efficient order matchingautomation, but suffer from custodianship risk. They hold a customer'sfunds in an account to facilitate a transaction. All modern exchanges,from NASDAQ to FOREX markets to traditional Bitcoin exchanges, holdcustomer funds in order to establish an order book for exchange trading.The customer must therefore trust that the exchange will safeguard theirmoney.

With non-blockchain-asset exchanges (like the traditional NASDAQ orNYSE), all assets are contract or paper based, stored in a centraldatabase. They are not blockchain based (stored in a decentralizeddatabase or locally stored ledgers). Because of this, their transfer andexchange can almost always be reversed. So, if the NASDAQ system wasever hacked or attacked, resulting in changes to balances of customersor the bad actor absconding with funds, NASDAQ (along with banks) canrollback the last instructions and customers will retain their money. Asa result, traditional non-blockchain exchanges have earned and keptcustomer's trust, and the risk is manageable.

Blockchain-based digital assets, such as Bitcoin, rely on a distributeddatabase of peer-to-peer networking to maintain a continuously growinglist of data records that are hardened against tampering and revision.These records are often enforced cryptographically and hosted onmachines working as data storage nodes. Blockchain-asset exchanges usedecentralized control as opposed to centralized electronicmoney/centralized banking systems.

With crypto-currency or blockchain-based assets there is often no“reversion” possible with the instructions. If a bad actor breaks intoan exchange and revises customer balances or steals funds, thoseinstructions cannot be reversed. Funds can be stolen by outsiders (orinsiders) with no recourse. This problem was seen many times since thecreation of Bitcoin, with the collapse of the Japan-based Mt. GoxBitcoin exchange being the most notorious. Over $400 m of customer moneyvanished in 2014 when Mt. Gox collapsed. The money “vanished” becauseMt. Gox had custody of customer's money.

There is thus a need, for a blockchain-asset exchange in which there iszero custody of the funds by the exchange itself. What is needed is asystem and method for offering a blockchain-asset exchange that providesparties and counter-parties with security in swapping possession oftheir blockchain-assets without counter-party risk. A customer needsassurance that a c

ounter-party will not receive the customer's payment until the desiredasset is received by the customer (from the counter-party); conversely,a counter-party needs assurance that once an order is fulfilled, thepayment funds are irreversible by the customer. As such, what is neededis a mechanism capable of confirming that parties (e.g., customer,counter-party) to an exchange or transaction receive their expectedpayment or property before the system releases the counter-payment orcounter-property. In this way, a rule based, computer implemented“Zero-Custody Switch” is described that improves computer security byensuring funds are in place and requires automated multisignatureauthorization before taking action, such that, neither party has totrust the other.

SUMMARY

Disclosed herein are systems and methods capable of addressing theabove-described shortcomings in the art, and may also provide any numberof additional or alternative benefits and advantages. The embodimentsdescribed herein may comprise hardware and software components capableof hosting a blockchain-asset exchange, whereby one or more serversexecute a software-based mechanism allowing exchange customers to placestanding-limit orders for blockchain-based digital assets (e.g.,crypto-currency, Bitcoin, etc.) with a counter-party. The present systemdescribes a mechanism (the “Zero-Custody Switch”) by whichcrypto-currency and blockchain-based assets can be placed in “bid” and“ask” orders and exchanged with no custodianship. A customer can placemarket or limit-orders in this exchange, and have them execute or befully-refunded at the customer's request, with zero risk to the customeror the exchange.

In an embodiment, the transaction is non-custodial for both parties; itis cryptographically secured on a blockchain such that neither partyalone can transfer payment, and the order is configured to expire aftera user-defined period of time. The customer may be assured that thecounter-party will not receive payment until the customer receives thedesired asset. This assurance is based in part on a third partyrule-based “Oracle” that can independently confirm transactions based onupdates to the public blockchain database. Likewise, the counter-partymay be assured that once the order is fulfilled, and the customerreceives the desired asset, the customer cannot reverse payment orotherwise rescind the payment from the counter-party.

In an embodiment, a computer-implemented method comprises generating, byan exchange server hosting a digital asset exchange service, anencrypted multi-signature payment account, wherein the payment accountis encrypted according to a first key generated by a client computer, asecond key generated by the exchange server, and a third key generatedby an oracle server, and wherein the payment account is accessible whendecrypted by at least two keys of the first key, the second key, and thethird key; monitoring, by the exchange server, a first public blockchainasset record, a transfer of a first digital asset from the clientcomputer to the encrypted multi-signature payment account; monitoring,by the exchange server, a second public blockchain asset record, atransfer of a second digital asset from a second client computer, to anaccount associated with the client computer; and upon verifying, by theexchange server, via the second public blockchain asset record, atransfer of the second digital asset to an account associated with theclient computer: signing, by the exchange server, the first blockchainof the first digital asset, wherein the oracle server signs the firstblockchain using the third key.

In another embodiment, a computing system for exchangingblockchain-based digital assets, the system comprises an exchange serverhosted on one or more server computers comprising a processor, theexchange server configured to: generate an encrypted multi-signaturepayment account, wherein the payment account is encrypted according to afirst key generated by a client computer, a second key generated by theexchange server, and a third key generated by an oracle server, andwherein the payment account is accessible when decrypted by at least twokeys of the first key, the second key, and the third key; monitor afirst public blockchain asset record, a transfer of a first digitalasset from the client computer to the encrypted multi-signature paymentaccount; monitor a second public blockchain asset record, a transfer ofa second digital asset from a second client computer, to an accounthaving a payment address associated with the client computer; and uponverifying, via the second public blockchain asset record, a transfer ofthe second digital asset to an account associated with the clientcomputer: sign the first blockchain of the first digital asset, whereinthe oracle server signs the first blockchain using the third key.

It is to be understood that both the foregoing general description andthe following detailed description are exemplary and explanatory and areintended to provide further explanation of the invention as claimed.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings constitute a part of this specification andillustrate an embodiment of the invention and together with thespecification, explain the invention.

FIG. 1 shows components of an embodiment in accordance with the presentdisclosure.

FIG. 2 depicts the components of an embodiment of a network inaccordance with the present disclosure.

FIG. 3 depicts a flow chart illustrating the steps in an embodiment ofthe present disclosure.

FIG. 4 depicts a flow chart illustrating the steps in an embodiment ofthe present disclosure.

FIG. 5 depicts a flow chart illustrating the steps in an embodiment ofthe present disclosure.

FIG. 6 depicts a flow chart illustrating the steps in an embodiment ofthe present disclosure.

FIG. 7 depicts a flow chart illustrating the steps used in returningassets in an embodiment of the present disclosure.

DETAILED DESCRIPTION

The present disclosure is here described in detail with reference toembodiments illustrated in the drawings, which form a part hereof. Otherembodiments may be used and/or other changes may be made withoutdeparting from the spirit or scope of the present disclosure. Theillustrative embodiments described in the detailed description are notmeant to be limiting of the subject matter presented here.

In an embodiment, the term Zero-Custody Switch refers to a system ormechanism that enables the implementation of non-custodial limit ormarket orders, in full or in part, (and therefore a functional financialexchange order book) for blockchain-based assets. A non-custodial orderis one in which no one party takes possession of the other party'sassets (they are instead held in a distributed blockchain-based,decentralized multisignature account), thereby removing the potentialcounter-party exposure of the underlying asset until the transaction isverified and completed.

Typically, a User wishes to purchases or exchange one blockchain-basedasset for another. For example, UserA possess CoinA (i.e. Bitcoin) thathe/she wishes to sell to purchase CoinB (i.e. Ethereum) at a price of1:10. An Exchange company may possess CoinB that it is willing to sell.As used herein the term Exchange refers to a blockchain asset merchantor a blockchain asset exchange. UserA therefore wants to place an orderto be executed when the price of CoinB drops to 0.1 of CoinA. UserAalways wants to ensure that if the price goal is not achieved, then theorder will not execute and will be retractable or cancelable. UserA canalso place a duration or expiration time on the order which will expireat a given point and trigger a refund back to UserA.

In an embodiment, UserA creates a non-custodial order with the Exchangeand then sends funds to an m-of-n multi-signature address identified bythe Exchange. In an embodiment, a 2 of 3 multi-signature addresses areused, although any other level of multi-signature address could be used.In operation, an automated, policy-based, third-party Oracle—which maybe a multi-signature cosigner independent of or operated by theExchange—signs along with either UserA or the Exchange depending oncertain rules and the circumstance. In an embodiment, the third partyOracle can be another company or can be a software application residingon a server (including a decentralized server, or as a “digitalautonomous corporation” (DAO)). The Oracle does not need to be owned ormanaged once established. It is essentially a switch that, based on aset of predetermined rules, determines whether the funds will go to theExchange or to the User. The basic rules of this switch are as follows:If the desired funds have been sent to the User (as defined by thepublic blockchain) then sign with the Exchange to complete thetransaction. The use of the 2-of-3 multisig account ensures that no oneparty can act unilaterally for any transaction. To complete anytransaction, 2 of the 3 parties must agree to sign. The Exchange cannotreceive the User's funds until it has proven it has sent the desiredasset, and the User cannot claw back his funds if the Exchange hasalready proven transfer of the desired asset. The Oracle signs with oneparty or the other based on irrefutable blockchain data.

Once a User has specified an order, the Exchange will give them amultisignature blockchain-asset address. As is understood in the art, amultisignature address requires several private keys to be used toaccess the account and transfer assets. This is different from a normalblockchain-asset transaction which requires just one signature. In anormal blockchain-asset transaction, if a User has a private key theycan spend the money. Traditional blockchain-asset exchanges hold theprivate keys for User's accounts, and this is why they havecustodianship and thus counter-party risk.

Once two signatures are received (in a 2-of-3 multisig scenario), theasset may be transferred. In an embodiment, if the Oracle and the seller(Exchange) sign, the asset goes to the Exchange. If the Oracle and theUser sign, the User's funds go back to the User. In the case of apartial fulfillment of an order, Oracle may only sign for aproportionate amount of the asset to be transferred to Exchange, andwould sign the inverse amount back to the User if requested. Once thetransfer of the desired blockchain-based digital asset occurs, eitherthe Exchange or the Oracle broadcast this transaction to every node onthe blockchain network that then record that same transaction all aroundthe world. In this manner, like in all blockchain-asset transactions,there is no central server. All block based reporting is done on apublic peer-to-peer network.

In an embodiment, the following rules may be used to determine therequired signatures. If UserA received CoinB at the Final_Address (infull or in part), the Oracle signs with the Exchange, who receives CoinA(in full or in part); if UserA has not received CoinB at theFinal_Address, she may cancel the order, or it may expire. In eithercase, the Oracle multi-signature cosigner signs with UserA, such thatshe receives her CoinA back to her designated Refund_Address (the fullamount if none of the order was fulfilled, and a partial amount if partof the order was fulfilled).

As used herein there are four addresses of note when embodiments of thesystem are in operation: Payment_Address, Final_Address,Merchant_Address, and Refund_Address. But one having skill in the artwould appreciate that in various embodiments any number of addresses maybe included or used for the purposes of identifying payees, payors, andparties responsible for cryptocurrency exchange.

A Funded Order is a non-custodial order that has received CoinA fromUserA. An Unfunded Order is a non-custodial order that has not yetreceived CoinA from UserA and a Completed Order is a non-custodial orderin which CoinB has been sent to UserA at Final Address, completing thetransaction.

Payment_Address refers to the address to which UserA must send CoinA tocreate a Funded Order. Final_Address is the address to which UserA'swants the CoinB sent if and when the order completes. A Refund_Addressis the address to which UserA wants a refund of CoinA sent if order doesnot complete, i.e., if the order expires. Additionally, there is theMerchant_Address which is the address where the Exchange wants CoinAsent if order completes.

In an embodiment, it is impossible for one party to defraud or takeanother party's funds. To send or to move the funds out of the multisigaccount requires at least two signatures (one each from two parties). Ifthere are not two signatures the funds can not be moved out. So there isno one party in the equation who can gain access without the approval ofanother. If the Exchange wishes to take the User's money withoutauthority, it would have to convince the rule based Oracle or the Userto offer their signatures, which the Exchange cannot compel them to do.

In an embodiment, the following is sent to the Oracle at order creation:Final_Address (User's address that CoinB must be sent to on completionof order); Expected Amount (amount that must be sent to Final_Address oncompletion of order); Merchant_Address (Merchant_Address orExchange_Address to which it receives CoinA on completion of order);Refund Address (User's address to which it receives CoinA if order doesNOT complete); and Expiration Time (UTC Date/time after which order isended and CoinA is returned to Refund Address). In an embodiment, thereturn delta (i.e., the amount of time the Oracle waits after Userrequests a refund to make sure order has not cleared) may also be sentas a variable or may be set to a specific period in the Oracle.

In an embodiment, the offered price for CoinB matches the price the Userwants. In this case, Exchange will send CoinB funds to the User'sFinal_Address. Exchange then requests Oracle to co-sign the CoinA fundsover to the Merchant_Address. Oracle checks Final_Address and if fundsin the Expected Amount are present, the Oracle will sign with theExchange for CoinA funds to go to the Merchant_Address (in full or inpart, based on how much of the order was filled).

In an embodiment, if a User wishes to cancel an order, the User may senda request to the Oracle to cancel order. The Oracle waits apredetermined time (the return delta) and then checks to confirm thatthe Final_Address has not received any deposited funds in theExpected_Amount before signing with the User for CoinA to go toReturn_Address, specified at creation time.

In an embodiment, where a User wishes to cancel an order, the User maycontact the Exchange to cancel the order. In this embodiment, the Userconfirms cancellation with the Exchange instead of the Oracle and theExchange cosigns the return (most likely manually). This is done if, forexample, the Oracle is offline or otherwise missing. In this manner, theUser can always get their asset back if the order has not been fulfilledor if the Oracle disappears.

In an embodiment, where the order expires, because the duration isreached without the order being filled, a full refund will occurautomatically, without the Exchange or User requesting it. Uponexpiration, the transaction will be signed by the Oracle to return CoinAto Return_Address. In order for this to occur, the Return transaction isgiven to the Oracle at creation time, and signed by the User's key. Thismay be done automatically by Oracle, or even without Oracle using aprotocol such as “checklocktimeverify” built into the blockchain (seeFIG. 7).

In an embodiment, if the Exchange ceases to exist before the order isfulfilled, the Oracle can either wait for the expiration times to occurnormally or may automatically sign the return transaction (since itpossesses a Return transaction already co-signed by UserA). In thisembodiment, CoinA will be sent to Refund_Address.

In an embodiment the User will be refunded even if the Oracle ceases toexist. Since there is nobody besides the Oracle to cosign with theExchange if a limit order is completed, the Exchange may cancel alllimit orders and sign returns of CoinA respectively to Users once itdetermines that the Oracle is not longer valid.

In an embodiment, if the User's key gets stolen the User will not losefunds. A stolen key can only be used to request a return of CoinA toRefund_Address (because the Oracle will only co-sign to that address).This removes the risk from the User even if her key is stolen, andlimits the liability of the Exchange and Oracle.

In an embodiment, if the Exchange's key gets stolen the Exchange willnot lose funds. Since the Merchant_Address is set at creation time, thiscase is the same as the User key getting stolen. The party who stole thekey is only able to send CoinA to the Exchange since that is the onlyaddress to which the Oracle will cosign. Thus there is no risk toExchange even if its key is stolen.

In an embodiment, if the Exchange' system is compromised the customerdevice, Oracle, or other computer in the system may request all Userorders to be refunded to Refund_Address. Unlike conventional exchanges,when such cases in the exemplary system, the User's assets are not indanger, because the Oracle, which is not compromised, will only sendfunds to User's Refund_Address.

In an embodiment, if the Oracle is compromised the funds will be safe.If the Oracle is compromised, it could sign transactions to maliciousaddresses. But this is not possible because the Oracle would requireeither the User or Exchange to co-sign in order to shift ownership ofthe cryptocurrency; thereby requiring two of three entities to becompromised before funds can be lost. In an embodiment, if User orExchange believes Oracle to be compromised, either can enact refund ofUser's funds to Refund_Address unilaterally (because each already has apartially signed refund transaction).

In an embodiment, the following information is returned from the Oracleupon creation: deposit address (i.e., the multisig address to which Usersends CoinA to activate order); TX complete (an unsigned transaction toMerchant_Address to be signed by Oracle to complete a transaction); andTX return_a (a transaction to Refund_Address pre-signed by the User'skey and Oracle's key, given to Exchange). In an embodiment, TX return_b(a transaction to Refund_Address signed by User's key and Exchange'skey) may also be sent to the Oracle upon account creation.

In an embodiment, the sole determination of whether to transfer funds toa new owner lies with the Oracle (which follows prescribed rules). Thisis because the Exchange will always sign a transaction to itself becauseit wants the User's money and the User will always sign a transactionback to herself because she wants the new asset. Accordingly, the powerlies with the Oracle to cause the asset switch to occur, and the Oraclemay have only specific rules built into its code. It monitors thepublicly available blockchain and it detects when and if a User'saccount received its currency. If it can verify the transfer it takes afirst action. If it can not verify a transaction it may take a secondaction. It will not act until it can verify from the updates to thepublic block chains that the funds have been deposited. The Oracle actsautomatically based on public information without User or Exchangeinput, making a transaction between two self-interested partiesprogrammatically fair, safe, and honest. If a sufficient, objective,publicly verifiable condition has been met, CoinA will go to Exchange,in proportion to the extent to which it was fulfilled. If the conditionis not met, CoinA will always go back to User, in proportion to theextent to which it was unfulfilled.

Reference will now be made to the exemplary embodiments illustrated inthe drawings, and specific language will be used here to describe thesame. It will nevertheless be understood that no limitation of the scopeof the invention is thereby intended. Alterations and furthermodifications of the inventive features illustrated here, and additionalapplications of the principles of the inventions as illustrated here,which would occur to a person skilled in the relevant art and havingpossession of this disclosure, are to be considered within the scope ofthe invention.

The present disclosure is now described more fully with reference to theaccompanying drawings, in which example embodiments of the presentdisclosure are shown. The present disclosure may, however, be embodiedin many different forms and should not be construed as necessarily beinglimited to the example embodiments disclosed herein. Rather, theseexample embodiments are provided so that the present disclosure isthorough and complete, and fully conveys the concepts of the presentdisclosure to those skilled in the relevant art. In addition, featuresdescribed with respect to certain example embodiments may be combined inand/or with various other example embodiments. Different aspects and/orelements of example embodiments, as disclosed herein, may be combined ina similar manner. Further, some example embodiments, whetherindividually and/or collectively, may be components of a larger system,wherein other procedures may take precedence over and/or otherwisemodify their application. Additionally, a number of steps may berequired before, after, and/or concurrently with example embodiments, asdisclosed herein. Note that any and/or all methods and/or processes, atleast as disclosed herein, can be at least partially performed via atleast one entity in any manner.

The terminology used herein can imply direct or indirect, full orpartial, temporary or permanent, action or inaction. For example, whenan element is referred to as being “on,” “connected” or “coupled” toanother element, then the element can be directly on, connected orcoupled to the other element and/or intervening elements may be present,including indirect and/or direct variants. In contrast, when an elementis referred to as being “directly connected” or “directly coupled” toanother element, there are no intervening elements present.

Although the terms first, second, etc. may be used herein to describevarious elements, components, regions, layers and/or sections, theseelements, components, regions, layers and/or sections should notnecessarily be limited by such terms. These terms are only used todistinguish one element, component, region, layer or section fromanother element, component, region, layer or section. Thus, a firstelement, component, region, layer, or section discussed below could betermed a second element, component, region, layer, or section withoutdeparting from the teachings of the present disclosure.

The terminology used herein is for describing particular embodimentsonly and is not intended to be necessarily limiting of the presentdisclosure. As used herein, the singular forms “a,” “an” and “the” areintended to include the plural forms as well, unless the context clearlyindicates otherwise. The terms “comprises,” “includes” and/or“comprising,” “including” when used in this specification, specify thepresence of stated features, integers, steps, operations, elements,and/or components, but do not preclude the presence or addition of oneor more other features, integers, steps, operations, elements,components, and/or groups thereof. Further, alternate terminology shouldnot be limited necessarily as exclusionary, but can be inclusionary aswell.

Unless otherwise defined, all terms used herein, including technical andscientific terms, have the same meaning as commonly understood by one ofordinary skill in the art to which this disclosure belongs. The terms,such as those defined in commonly used dictionaries, should beinterpreted as having a meaning that is consistent with their meaning inthe context of the relevant art and should not be interpreted in anidealized and/or overly formal sense unless expressly so defined herein.

As used herein, the term “about” and/or “substantially” refers to an upto and including a ±10% variation from the nominal value/term. Suchvariation is always included in any given value/term provided herein,whether or not such variation is specifically referred thereto.

If any disclosures are incorporated herein by reference and suchdisclosures conflict in part and/or in whole with the presentdisclosure, then to the extent of conflict, and/or broader disclosure,and/or broader meaning of terms, the present disclosure controls. Ifsuch disclosures conflict in part and/or in whole with one another, thento the extent of conflict, the later-dated disclosure controls.

FIG. 1 shows components of an exemplary system 100, according to anexemplary embodiment. Exchange service 101 comprising one or moreExchange servers 103 and one or more transaction databases 105. AnExchange server 103 can be any general or special purpose computer. Itmay operate as a single computer, which can be a hardware and/orsoftware server, a workstation, a desktop, a laptop, a tablet, a mobilephone, a mainframe, a supercomputer, a server farm, and so forth. Thecomputer can be operated, directly and/or indirectly, by and/or onbehalf of the Exchange. The computer can be touchscreen and/ornon-touchscreen. The computer can include and/or be part of anothercomputer system and/or cloud network. The computer can run any type ofOS, such as iOS™, Windows™, Android™, Unix™, Linux™ and/or others. Thecomputer can include and/or be coupled to an input device, such as amouse, a keyboard, a camera, whether forward-facing and/or back-facing,an accelerometer, a touchscreen, and/or a microphone, and/or an outputdevice, such as a display, a speaker, and/or a printer. The computer isin communication with networks 102, such as directly and/or indirectly.Such communication can be via a software application, a mobile app, abrowser, an OS, and/or any combination thereof. The computer can includecircuitry for global positioning determination, such as via GPS, asignal triangulation system, and so forth. The computer can be equippedwith NFC circuitry. The computer can run a database, such as arelational database, which contains User and account information.

A transaction database 105 can be a separate database or incorporatedinto a computer or computers hosting the exchange server 103. It may bea relational database, a flat file, a segmented database, or any otherform or structure. Database 105 may be maintained by Exchange service101 or may be maintained by a third party. A customer device 107 can bea mobile device, a tablet, a computer, a laptop, a portable computingdevice, a stationary computing device, a data entry terminal or a dumbterminal. It may be a wired or wireless device and may be a standalonedevice or may be coupled to a network.

A third-party computer 109 may be a computer or server, which can be ahardware and/or software server, a workstation, a desktop, a laptop, atablet, a mobile phone, a mainframe, a supercomputer, a server farm, andso forth. The computer can be operated, directly and/or indirectly, byand/or on behalf of the Oracle. The computer can be touchscreen and/ornon-touchscreen. The computer can include and/or be part of anothercomputer system and/or cloud network. The computer can run any type ofOS, such as iOS™, Windows™, Android™, Unix™, Linux™ and/or others. Thecomputer can include and/or be coupled to an input device, such as amouse, a keyboard, a camera, whether forward-facing and/or back-facing,an accelerometer, a touchscreen, and/or a microphone, and/or an outputdevice, such as a display, a speaker, and/or a printer. The computer isin communication with network 102, such as directly and/or indirectly.Such communication can be via a software application, a mobile app, abrowser, an OS, and/or any combination thereof. The computer can includecircuitry for global positioning determination, such as via GPS, asignal triangulation system, and so forth. The computer can run anOracle application.

One or more networks 102 may include a plurality of nodes, such as acollection of computers and/or other hardware interconnected bycommunication channels, which allow for sharing of resources and/orinformation. Such interconnection can be direct and/or indirect. Network102 can be wired and/or wireless. Network 102 can allow forcommunication over short and/or long distances. Network 102 can operatevia at least one network protocol, such as Ethernet, a TransmissionControl Protocol (TCP)/Internet Protocol (IP), and so forth. Network 102can have any scale, such as a personal area network, a local areanetwork, a home area network, a storage area network, a campus areanetwork, a backbone network, a metropolitan area network, a wide areanetwork, an enterprise private network, a virtual private network, avirtual network, a satellite network, a computer cloud network, aninternetwork, a cellular network, and so forth. Network 102 can beand/or include an intranet and/or an extranet. Network 102 can be and/orinclude Internet. Network 102 can include other networks and/or allowfor communication with other networks, whether sub-networks and/ordistinct networks, whether identical and/or different from network 102.Network 102 can include hardware, such as a network interface card, arepeater, a hub, a bridge, a switch and/or a firewall. Network 102 canbe operated, directly and/or indirectly, by and/or on behalf of oneand/or more entities.

FIG. 2 shows an example embodiment of a network environment according tothe present disclosure. An environment for an exemplary system 20includes a network 204, a UserA 200, Oracle 201, and an Exchange 202.

Network 204 includes a plurality of nodes, such as a collection ofcomputers and/or other hardware interconnected by communicationchannels, which allow for sharing of resources and/or information. Suchinterconnection can be direct and/or indirect. Network 204 can be wiredand/or wireless. Network 204 can allow for communication over shortand/or long distances. Network 204 can operate via at least one networkprotocol, such as Ethernet, a Transmission Control Protocol(TCP)/Internet Protocol (IP), and so forth. Network 204 can have anyscale, such as a personal area network, a local area network, a homearea network, a storage area network, a campus area network, a backbonenetwork, a metropolitan area network, a wide area network, an enterpriseprivate network, a virtual private network, a virtual network, asatellite network, a computer cloud network, an internetwork, a cellularnetwork, and so forth. Network 204 can be and/or include an intranetand/or an extranet. Network 204 can be and/or include Internet. Network204 can include other networks and/or allow for communication with othernetworks, whether sub-networks and/or distinct networks, whetheridentical and/or different from network 204. Network 204 can includehardware, such as a network interface card, a repeater, a hub, a bridge,a switch and/or a firewall. Network 204 can be operated, directly and/orindirectly, by and/or on behalf of one and/or more entities,irrespective of any relation to UserA 200, Oracle 201, and/or Exchange202.

UserA 200 operates a computer, which can be a hardware and/or softwareserver, a workstation, a desktop, a laptop, a tablet, a mobile phone, amainframe, a supercomputer, a server farm, and so forth. The computercan be operated, directly and/or indirectly, by and/or on behalf ofUserA 200. The computer can be touchscreen and/or non-touchscreen. Thecomputer can include and/or be part of another computer system and/orcloud network. The computer can run any type of operating system (OS),such as iOS™, Windows™, Android™, Unix™, Linux™ and/or others. Thecomputer can include and/or be coupled to an input device, such as amouse, a keyboard, a camera, whether forward-facing and/or back-facing,an accelerometer, a touchscreen, and/or a microphone, and/or an outputdevice, such as a display, a speaker, and/or a printer. The computer isin communication with network 204, such as directly and/or indirectly.Such communication can be via a software application, a mobile app, abrowser, an OS, and/or any combination thereof. The computer can includecircuitry for global positioning determination, such as via a globalpositioning system (GPS), a signal triangulation system, and so forth.The computer can be equipped with near-field-communication (NFC)circuitry.

Oracle 201 operates a computer, which can be a hardware and/or softwareserver, a workstation, a desktop, a laptop, a tablet, a mobile phone, amainframe, a supercomputer, a server farm, and so forth. The computercan be operated, directly and/or indirectly, by and/or on behalf ofOracle 201. The computer can be touchscreen and/or non-touchscreen. Thecomputer can include and/or be part of another computer system and/orcloud network. The computer can run any type of OS, such as iOS™,Windows™, Android™, Unix™, Linux™ and/or others. The computer caninclude and/or be coupled to an input device, such as a mouse, akeyboard, a camera, whether forward-facing and/or back-facing, anaccelerometer, a touchscreen, and/or a microphone, and/or an outputdevice, such as a display, a speaker, and/or a printer. The computer isin communication with network 204, such as directly and/or indirectly.Such communication can be via a software application, a mobile app, abrowser, an OS, and/or any combination thereof. The computer can includecircuitry for global positioning determination, such as via GPS, asignal triangulation system, and so forth. The computer can be equippedwith NFC circuitry. The computer can run a database, such as arelational database, which contains User and/or account information.Exchange 202 operates a computer, which can be a hardware and/orsoftware server, a workstation, a desktop, a laptop, a tablet, a mobilephone, a mainframe, a supercomputer, a server farm, and so forth. Thecomputer can be operated, directly and/or indirectly, by and/or onbehalf of Oracle 201. The computer can be touchscreen and/ornon-touchscreen. The computer can include and/or be part of anothercomputer system and/or cloud network. The computer can run any type ofOS, such as iOS™, Windows™, Android™, Unix™Linux™ and/or others. Thecomputer can include and/or be coupled to an input device, such as amouse, a keyboard, a camera, whether forward-facing and/or back-facing,an accelerometer, a touchscreen, and/or a microphone, and/or an outputdevice, such as a display, a speaker, and/or a printer. The computer isin communication with network 204, such as directly and/or indirectly.Such communication can be via a software application, a mobile app, abrowser, an OS, and/or any combination thereof. The computer can includecircuitry for global positioning determination, such as via GPS, asignal triangulation system, and so forth. The computer can be equippedwith NFC circuitry. The computer can run a database, such as arelational database, which contains payment information.

UserA 200 is in communication with network 204, such as direct,indirect, encrypted, unencrypted, and others. UserA 200 is in selectivecommunication, such as direct, indirect, encrypted, unencrypted, andothers, with at least one of the Oracle 201 and/or the Exchange 202 vianetwork 204.

UserA 200 can be a consumer and/or a legal entity, such as anorganization, a company, a partnership, and/or others. Oracle 201 is incommunication with network 204, such as direct, indirect, encrypted,unencrypted, and others. Oracle 201 is in selective communication, suchas direct, indirect, encrypted, unencrypted, and others, with at leastone of UserA 200 and Exchange 202 via network 204. For example, Oracle201 can communicate with the acquirer of Exchange 202 regarding Exchange202. For example, Oracle 201 can communicate with UserA 200 via email orany other means of communication.

Oracle 201 may include a financial entity, such as a bank, an exchange,a secure server, and/or others, and/or any other organization thatengages in the exchange and management of blockchain-assets.

The Oracle may be a financial entity, which accepts and/or processesblockchain-asset transactions for Exchange 202, including crediting ordebiting an account of Exchange 202. Such accepting and/or processing isfor a good and/or a service offered via Exchange 202 to UserA 200. TheOracle may also be a server or series of servers or an application orseries of application running autonomously on computers or servers.Exchange 202 is in communication with network 204, such as direct,indirect, encrypted, unencrypted, and others. Exchange 202 is inselective communication, such as direct, indirect, encrypted,unencrypted, and others, with at least one of UserA 200 and Oracle 201via network 204. Exchange 202 includes an individual, an organization,and/or a business accepting blockchain-asset transactions whetherdirectly and/or indirectly. Exchange 202 includes a for-profit entity, anon-for-profit entity, a government agency, and/or others. Exchange 202includes an online Exchange, a brick-and-mortar Exchange, and/or anycombination thereof. Note that any amount of merchants or exchanges 202can be used, as described herein. UserA 200 can be Exchange 202 and/orExchange 202 can be UserA 200.

FIG. 3 illustrates an embodiment in accordance with the presentdisclosure. UserA 200 creates a non-custodial order transaction request304 with a Exchange 202 by specifying the type of CoinA that UserA hasand wants to exchange and optionally the amount. UserA specifies thetype of coin, CoinB that UserA wishes to acquire, the desired price ofCoinB, a Final Address, a Refund Address, and how long the order shouldbe in place, i.e., the duration, in hours or days. In an embodiment, theExpected Amount of CoinB is automatically established from the price.

In response, Oracle 201 creates an Unfunded Order 305 with thesespecified criteria and requests UserA to send CoinA to a 2-of-3multi-sig Payment Address. UserA, the Oracle and the Exchange allgenerate keys based on a public key function and no party can see theother party's keys. A User's key can either be shown explicitly to her,or held safely in her browser window (client-side).

Once the Unfunded Order is established, UserA sends CoinA to thedesignated Payment Address. At step 306, the system waits forconfirmation that UserA sent CoinA to the specified Payment Address.Confirmation may be obtained by monitoring the block chain informationto determine when funds have been transferred. Once payment isconfirmed, the order transitions from an Unfunded Order to a FundedOrder 307. If UserA 200 does not send payment within a specified period,the unfunded order may be closed by Oracle 201. At this point, CoinA isheld in the 2-of 3 multi-signature account, with the three keys held byUserA, the Oracle and the Exchange, respectively.

At step 308, the system determines if UserA cancelled the order. If anorder is cancelled by UserA 200, the Oracle 201 will sign a refund toUserA if the expected Amount of CoinB is not at the Final_Address at thetime of cancellation. If the order is not canceled the system proceedsto step 309. At step 309, the system checks to see if the order durationhas expired. If the order expires due to the duration expiring in step309, then the Oracle 201 will send UserA's CoinA back to theRefund_Address at step 310. In this manner every order shall either befilled, cancelled or expire and the Oracle will not retain UserA's coinor Exchange's coin B. The system is safe for UserA 200 because theExchange 202 can't take UserA's CoinA until after it has sent CoinB toher. In the present disclosure, the system provides safety for theExchange once they send coin B because UserA cannot cancel the Orderonce the CoinB has been sent and UserA is not at risk because UserA'sCoinA will be returned if the transaction is cancelled or expires.

In an embodiment, the check on the expected amount at step 312 by theOracle 201 will be done some time after UserA's signature is received toprevent a “race” condition. In an embodiment, this was done roughly hour(though any time may be used) after UserA's signature was received fromthe associated client computer, although the duration can be anythingshort of the expiration time. If the expected amount of CoinB is not atthe Final_Address, at step 312, the Oracle 201 will sign thetransmission that sends CoinA back to UserA if the order has beencancelled at step 308 or expired at step 309, otherwise it will wait forthe Exchange 202 to send coin B to the Payment_Address at step 311.

If Exchange 202 sends the expected amount of CoinB to the Final_Address,at step 313 the Oracle will sign the payment to the Exchange and theOracle will send the CoinA to the Merchant_Address and send Coin B toUserA at its designated Final_Address completing the order.

FIG. 4 describes another embodiment of the systems and method describedand the steps used to generate public keys, and order completion. Atstep 401, data is entered by UserA from a browser or other input portalindicating the desire to engage in a blockchain-asset exchange. In anembodiment, a User account is created to facilitate data entry. Inanother embodiment, no account is required, and the order data is simplytransmitted between the User, the Exchange and the Oracle.

UserA may input order amount, currency to exchange, and the duration anorder should remain in place. UserA also enters information to generatepublic Key1. UserA's browser using client side codes that no other usershave access to creates public key1. This ensures that the public key isonly accessible by UserA and no one else. Once key1 is generated it issaved. Data and Key1 critical for the transaction are passed to theExchange at step 402. At step 403, the Exchange will use the key1generated by UserA to generate public Key2 and any other data necessaryfor the transaction. The keys act as the signatures on the multisigaccount.

Once Key2 is generated, at step 404, both the User's public Key1 and theExchange's public Key2 will be sent to the Oracle. At step 405, theOracle will use all the received information to generate a public Key3and combines it with Key1 and Key2 to create the Deposit Address for themultisig account. At step 406, the Oracle will return that address tothe Exchange. The Exchange at step 407 will use the data to create theunfunded limit order. At step 408, the Deposit Address is sent to UserA.At step 409, UserA transfers the funds to the Deposit Address.

FIG. 5 depicts the second steps in the system and method of the presentdisclosure. At step 501, the Exchange checks block chain data on thenetwork to see if the Deposit Address created in step 405 has beenfunded. Once it confirms that UserA has funded the address at step 502,the Exchange will create and sign a return to User transaction. Thereturn to User transaction and a return a document will be sent to theOracle for storage at step 503. This is essentially a return addressfrom the User. The return address is the only address that the funds canbe sent back to the User. This is done for security purposes so thatsomeone can not access the User's key later and change the address andhave the currency sent to a different address. Essentially the Exchangewill sign the transactions of that return and give it to the Oracle forstorage. In this way, if the Oracle needs to refund the User, it alreadyhas a signed OK from the Exchange. Oracle at step 504, will also sign atransaction to that return and send it back to the Exchange at step 505for storage. At step 506, the Exchange stores the return address andactivates the order. This ensures that the Exchange can refund to theUser if the Oracle disappears. At which point, the Exchange will look tofill the order. As illustrated in FIG. 5, the User's funds can bereturned to the User in the event that the Oracle or the Exchangedisappear and are not available at the necessary time to sign themultisig account.

FIG. 6 depicts the third step in an embodiment of the system and methodof the present disclosure. In FIG. 6, at step 600, the limit order isactive. From step 600, there are three possible scenarios. The order isfilled, the order expires or the order is cancelled. If the order is tobe filled, the Exchange system searches and determining when and if thatorder can actually be filled, i.e., there is an account, whether theExchange itself or another user, willing to make the exchange withUserA.

At step 601, the Exchange finds the rate on the exchange that can fillUserA's order (in full or in part). At step 602, the Exchange makes thetransaction and exchanges the funds. The Exchange at step 603 then sendsthe requested amount (in full or in part) to the Final_Address which isUserA's account. Once that is completed, at step 604, the Exchange willrequest the transaction of the deposit funds to its account, and sendsthat information the Oracle to co-sign. At step 605, Oracle willautomatically confirm that the funds (in full or in part) have beendelivered to UserA, by verifying the Final_Address on the blockchain. Ifit successfully verifies the exchange, then the Oracle will sign thetransaction (for the full amount or respective portion thereof) andbroadcast that transaction or send that information back to theExchange. At that point, the Exchange will broadcast the transaction toitself and have the required two signatures to complete the transaction.At step 606 once the two signatures are received, the User's funds willbe deposited into the exchange.

In another scenario the order expires before it is filled. This mightoccur, If before the limit order can be filled at step 601, the orderexpires at step 610. In an embodiment, when a User originally sets uptheir order and account in steps 401, one of the pieces of data theywill enter is an expiration time, at which point if the order has notbeen filled it will automatically be returned to the User (partially soif the order was in part filled).

If the expiration time is reached at step 610, Oracle will note theexpiration and at step 611 will sign the return which the exchangealready signed in step 604 so that the funds can be sent back to theUser's address at step 612. In an embodiment, the User can decide tocancel the order at step 620 anytime up until the expiration time isreached or the order has been filled.

Normally the Oracle will be contacted, at step 621, but in an embodimentthe Exchange can also return the funds. At step 622, the Exchange or theOracle will wait and then check to make sure that the withdraw addressis not funded, basically making sure that the User is not trying todefraud the Exchange. Once that information is confirmed, the Oraclewill sign a return_a so that the funds can be sent back to the User atstep 623. If for some reason the Oracle has disappeared, at step 624,the User contacts the Exchange for a refund. At step 625, the Exchangecan confirm that the order is unfilled by verifying the withdrawaddress. If that is confirmed, then the Exchange can sign the return_band the funds are returned to the User at step 626. This is possiblebecause the Oracle pre-signed for the return. In an embodiment, anycancellation first attempts to go through the Oracle first because itwill be automatically processed. If for some reason the Oracle does notrespond, the Exchange can also refund the currency so that the funds arenot lost where no one can access them.

FIG. 7 illustrates an embodiment for providing a User with a refund inthe event that both the Oracle and the Exchange disappear. At step 701,the Exchange, by monitoring the blockchains, detects that the User hasfunded the Payment_address. Once the funding is detected, at step 702,the Exchange will create a return transaction to the User Return addressthat specifies an op_checklocktimeverify for the order expiration dateand a buffer time (e.g., seven days). The Oracle at step 703 willco-sign this transaction and broadcast it at step 704. The User can seethat the return transaction is in place on the blockchain, but it is notconfirmed in the blockchain until the prescribed time is reached and ifthe order was not completed or cancelled in the interim.

This is similar to the Bitcoin feature, “CheckLockTime” that enablesusers to complete transactions and broadcast them, but the transactionsdo not become “valid” or “confirmed” until the specified time. In thepresent disclosure, the Exchange broadcasts the return transaction, theneven if the Oracle and the Exchange go offline or disappear, the Userwill get the assets back as long as it has not been completed by theprescribed time. If the order is returned to the User, or completedsuccessfully, then the op_checklocktimeverify transaction will beinvalid because the funds will already have been be sent. The variousillustrative logical blocks, modules, circuits, and algorithm stepsdescribed in connection with the embodiments disclosed herein may beimplemented as electronic hardware, computer software, or combinationsof both. To clearly illustrate this interchangeability of hardware andsoftware, various illustrative components, blocks, modules, circuits,and steps have been described above generally in terms of theirfunctionality. Whether such functionality is implemented as hardware orsoftware depends upon the particular application and design constraintsimposed on the overall system. Skilled artisans may implement thedescribed functionality in varying ways for each particular application,but such implementation decisions should not be interpreted as causing adeparture from the scope of the present invention.

Embodiments implemented in computer software may be implemented insoftware, firmware, middleware, microcode, hardware descriptionlanguages, or any combination thereof. A code segment ormachine-executable instructions may represent a procedure, a function, asubprogram, a program, a routine, a subroutine, a module, a softwarepackage, a class, or any combination of instructions, data structures,or program statements. A code segment may be coupled to another codesegment or a hardware circuit by passing and/or receiving information,data, arguments, parameters, or memory contents. Information, arguments,parameters, data, etc. may be passed, forwarded, or transmitted via anysuitable means including memory sharing, message passing, token passing,network transmission, etc.

The actual software code or specialized control hardware used toimplement these systems and methods is not limiting of the invention.Thus, the operation and behavior of the systems and methods weredescribed without reference to the specific software code beingunderstood that software and control hardware can be designed toimplement the systems and methods based on the description herein.

When implemented in software, the functions may be stored as one or moreinstructions or code on a non-transitory computer-readable orprocessor-readable storage medium. The steps of a method or algorithmdisclosed herein may be embodied in a processor-executable softwaremodule which may reside on a computer-readable or processor-readablestorage medium. A non-transitory computer-readable or processor-readablemedia includes both computer storage media and tangible storage mediathat facilitate transfer of a computer program from one place toanother. A non-transitory processor-readable storage media may be anyavailable media that may be accessed by a computer. By way of example,and not limitation, such non-transitory processor-readable media maycomprise RAM, ROM, EEPROM, CD-ROM or other optical disk storage,magnetic disk storage or other magnetic storage devices, or any othertangible storage medium that may be used to store desired program codein the form of instructions or data structures and that may be accessedby a computer or processor. Disk and disc, as used herein, includecompact disc (CD), laser disc, optical disc, digital versatile disc(DVD), floppy disk, and blu-ray disc where disks usually reproduce datamagnetically, while discs reproduce data optically with lasers.Combinations of the above should also be included within the scope ofcomputer-readable media. Additionally, the operations of a method oralgorithm may reside as one or any combination or set of codes and/orinstructions on a non-transitory processor-readable medium and/orcomputer-readable medium, which may be incorporated into a computerprogram product.

The preceding description of the disclosed embodiments is provided toenable any person skilled in the art to make or use the presentinvention. Various modifications to these embodiments will be readilyapparent to those skilled in the art, and the generic principles definedherein may be applied to other embodiments without departing from thespirit or scope of the invention. Thus, the present invention is notintended to be limited to the embodiments shown herein but is to beaccorded the widest scope consistent with the following claims and theprinciples and novel features disclosed herein.

While various aspects and embodiments have been disclosed, other aspectsand embodiments are contemplated. The various aspects and embodimentsdisclosed are for purposes of illustration and are not intended to belimiting, with the true scope and spirit being indicated by thefollowing claims.

What is claimed is:
 1. A computer-implemented method comprising:generating, by an exchange server hosting a digital asset exchangeservice, an encrypted multi-signature payment account, wherein thepayment account is encrypted according to a first key generated by aclient computer, a second key generated by the exchange server, and athird key generated by an oracle server, and wherein the payment accountis accessible when decrypted by at least two keys of the first key, thesecond key, and the third key; monitoring, by the exchange server, afirst public blockchain asset record, a transfer of a first digitalasset from the client computer to the encrypted multi-signature paymentaccount; monitoring, by the exchange server, a second public blockchainasset record, a transfer of a second digital asset from a second clientcomputer, to an account associated with the client computer; and uponverifying, by the exchange server, via the second public blockchainasset record, a transfer of the second digital asset to an accountassociated with the client computer: signing, by the exchange server,the first blockchain of the first digital asset, wherein the oracleserver signs the first blockchain using the third key.
 2. The methodaccording to claim 1, further comprising, transmitting, by the exchangeserver, to a payment address associated with the second client computeran update indicating custody for the first digital asset to a secondclient associated with the second client computer.
 3. The methodaccording to claim 1, wherein generating the payment account furthercomprises receiving, by the exchange server, from the client computer afirst seed value.
 4. The method according to claim 3, further comprisinggenerating, by the exchange server, the second key based upon the firstseed value received from the client computer.
 5. The method according toclaim 4, further comprising generating, by the exchange server, a secondseed based upon a portion of the second key generated by the exchangeserver.
 6. The method according to claim 5, further comprisingtransmitting, by the exchange server, the second seed and the first seedto the oracle server.
 7. The method according to claim 6, wherein theoracle server generates the third key based upon the first seed and thesecond seed.
 8. The method according to claim 1, further comprising,upon the exchange server signing the first blockchain: transmitting, bythe exchange server, an update to a plurality of devices hosting thefirst blockchain, the update indicating custody of the first digitalasset from a first client to a second client.
 9. The method according toclaim 1, wherein verifying the transfer of the second digital assetfurther comprises: receiving, by the exchange server, an update to thesecond blockchain indicating custody of the second digital asset from asecond client to a first client.
 10. The method according to claim 1,further comprising, upon determining that an expiration time thresholdis exceeded: upon verifying, by the exchange server, via the secondblockchain, the transfer of the second digital asset did not occur:signing, by the exchange server, the first blockchain of the firstdigital asset, wherein the oracle server signs the first blockchainusing the third key; and transmitting, by the exchange server, to arefund address associated with the client computer, an update indicatingcustody of the first digital asset to a first client associated with thefirst client computer.
 11. A computing system for exchangingblockchain-based digital assets, the system comprising: an exchangeserver hosted on one or more server computers comprising a processor,the exchange server configured to: generate an encrypted multi-signaturepayment account, wherein the payment account is encrypted according to afirst key generated by a client computer, a second key generated by theexchange server, and a third key generated by an oracle server, andwherein the payment account is accessible when decrypted by at least twokeys of the first key, the second key, and the third key; monitor afirst public blockchain asset record, a transfer of a first digitalasset from the client computer to the encrypted multi-signature paymentaccount; monitor a second public blockchain asset record, a transfer ofa second digital asset from a second client computer, to an accounthaving a payment address associated with the client computer; and uponverifying, via the second public blockchain asset record, a transfer ofthe second digital asset to an account associated with the clientcomputer: sign the first blockchain of the first digital asset, whereinthe oracle server signs the first blockchain using the third key. 12.The system according to claim 11, wherein the exchange server is furtherconfigured to transmit to a payment address associated with the secondclient computer an update indicating custody for the first digital assetto a second client associated with the second client computer.
 13. Thesystem according to claim 12, wherein the exchange server is furtherconfigured to: receive from the client computer a first seed value; andgenerate the second key based upon the first seed value received fromthe client computer.
 14. The system according to claim 13, wherein theexchange server is further configured to generate a second seed basedupon a portion of the second key generated by the exchange server. 15.The system according to claim 14, wherein the exchange server is furtherconfigured to transmit the second seed and the first seed to the oracleserver.
 16. The system according to claim 11, wherein, upon the exchangeserver signing the first blockchain, the exchange server is furtherconfigured to: transmit an update to a plurality of devices hosting thefirst blockchain, the update indicating custody of the first digitalasset changed from a first client to a second client.
 17. The systemaccording to claim 11, wherein the exchange server is further configuredto receive an update to the second blockchain indicating custody of thesecond digital asset from a second client to a first client, therebyverifying the transfer of the second digital asset.
 18. The systemaccording to claim 11, wherein, upon the exchange server determiningthat an expiration time threshold is exceeded, and upon the exchangeserver verifying via the second blockchain that the transfer of thesecond digital asset did not occur, the exchange server is furtherconfigured to sign the first blockchain of the first digital asset, andwherein the oracle server is further configured to sign the firstblockchain using the third key.
 19. The system according to claim 18,wherein the exchange server is further configured to transmit to arefund address associated with the client computer, an update indicatingcustody of the first digital asset to a first client associated with thefirst client computer.
 20. The system according to claim 11, the systemfurther comprising the oracle server hosted on one or more servercomputers comprising a processor, the oracle server configured to:generate the third key based upon the first seed and the second seedreceived from the exchange server; and sign the first digital blockchainusing the third key, according to an update to custody of the firstdigital asset and a corresponding update to custody of the seconddigital asset.